Colombo, Nov 22 (NIA) – Sri Lanka’s Condominium Developers, on Tuesday, welcomed the government’s budget proposals for 2017, relaxing restrictions on foreigners purchasing condominiums in the island country.
The Condominium Developers Association of Sri Lanka, an affiliated trade body of the Ceylon Chamber of Commerce, said in a statement that the budget contained a number of progressive proposals to stimulate demand from a new market segment to help absorb the increasing supply pipeline.
An association spokesman stated that currently there are over 8,000 luxury apartments being constructed in the city of Colombo.
He added that it is important to attract foreigners and Sri Lankan diaspora to purchase apartments to absorb this supply.
“An oversupply situation can be catastrophic to the property sector in particular and the economy in general,” the spokesman said.
According to the new Budget proposals, foreigners are allowed to purchase condominium property in the first 4 floors, which was earlier prohibited.
Foreigners are also now allowed to raise 40% of the cost from a domestic bank.
Earlier condominium property could be purchased by foreigners only if the entire value is paid upfront through an inward foreign remittance.
“This supports the country’s development plans including the government’s Megapolis development initiative. It is essential to attract FDI into the property development sector via freehold land ownership,” the spokesman said.
Furthermore, public quoted companies whose shares are freely transferable with no control over the extent of foreign ownership, now could acquire property, the spokesman added.